IEV Gas signs MOU to study LNG delivery to North Sumatra

By Ruli Setiawan

SGX-listed IEV Holdings Limited announced on Thursday that the company, through its subsidiary PT IEV Gas, has entered into a memorandum of understanding (MOU) with PT Maxpower Indonesia to collaborate on Liquefied Natural Gas (LNG) supply for the purpose of remote power generation in North Sumatera.

The MOU signed on Sept. 2, 2014 will initiate a feasibility study covering the review of the procurement, transport and delivery of LNG to industrial and remote power generation consumers in North Sumatera. Subject to the results of the Feasibility Study, the parties shall work towards definitive collaboration agreements setting out, inter alia, specific terms of collaboration and financing obligations.

The MOU is valid for a period of 12 months and may be extended upon the mutual agreement of both Parties. Any Party may unilaterally terminate the MOU for any reason at any time by providing 30 days prior written notice to the other party. In the event of termination of the MOU, neither party shall be liable for or have an obligation to compensate the other party in any form.

Editing by Johannes Simbolon